The appeal of neoclassical economics: some insights from Keynes's epistemology

AbstractNeoclassical economics continues to hold a particularly strong appeal for economists, in spite of concerns about its internal logic and applicability to policy issues. This appeal can be understood in terms of Keynes's system of logic which established grounds for rational belief when knowledge is, in general, uncertain. Mainstream methodology limits economic theory to those elements of the economic process which can, in practice, be represented by a closed, formal system; a high degree of certainty can be achieved within those limits. Keynes's more general epistemology supports a methodology which can increase knowledge beyond those limits, and thus extend the applicability of economics. If this approach is to be pursued, economics education needs to be broadened.